PLATINUM COMMUNICATIONS P.LTD, MUMBAI V. DCIT RG 8(2), MUMBAI

ITA 2862/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8426 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 13-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 142(1); 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.2862/M/2015 ASSESSMENT YEAR: 2011-12 M/S. PLATINUM COMMUNICATIONS PVT. LTD., 1 ST FLOOR, 349, BUSINESS POINT, WESTERN EXPRESS HIGHWAY, ANDHERI (EAST), MUMBAI-400 069 PAN: AAECP2215R VS. DEPUTY COMMISSIONER OF INCOME TAX, RANGE-8(2), AAYAKAR BHAVAN, MUMBAI (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI ARJIT CHAKRAVARTY, A.R. SHRI SHRADDHA SWARUP, A.R. REVENUE BY : SHRI PURUSHOTTAM KUMAR, D.R. DATE OF HEARING : 07.09.2017 DATE OF PRONOUNCEMENT : 10.11.2017 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 11.02.2014 OF THE COMMISSIONER OF I NCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2011-12. 2. THE SHORT FACTS OF THE CASE ARE AS UNDER: ITA NO.2862/M/2015 M/S. PLATINUM COMMUNICATIONS PVT. LTD. 2 THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS T HE AO) DURING THE ASSESSMENT PROCEEDINGS, WHILE GOING THRO UGH SCHEDULE - 11 OPERATING COSTS TO THE PROFIT & LOSS ACCOUNT O F THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION, OBSERVED THAT THE ASS ESSEE HAS DEBITED DISPLAY CHARGES OF RS.87,65,67,447/- AND DURING THE COURSE OF ASSESSMENT PROCEEDINGS, ASKED THE ASSESSEE TO FURNI SH PARTY-WISE DETAILS OF PURCHASES DEBITED TO P & L ACCOUNT ALONG WITH ONE SAMPLE BILL OF EACH PARTY. IN REPLY, THE ASSESSEE SUBMITT ED DETAILS OF PURCHASES. THEREAFTER, VIDE ANNEXURE TO NOTICE UND ER SECTION 142(1) DATED 31.07.2013, THE ASSESSEE WAS ASKED THAT, DISP LAY CHARGES OF RS.87,65,67,447/- HAS BEEN DEBITED UNDER THE HEAD OPERATING COSTS IN THE P & L ACCUNT AS PER SCHEDULE. THE ASSESSEE WAS ASKED TO SUBMIT THE DETAILS IN A SPECIFIC FORMAT AS GIVEN IN THE BODY OF THE ORDER. THE TOTAL COST OF SALE BOOK BY THE ASSESSEE WAS IN CONSIDERATION OF RS.87.65 CRORES. DURING THE COURS E OF ASSESSMENT PROCEEDINGS, THE AO ASKED TO FURNISH THE NAME, ADDR ESS AND PAN NUMBER AND OTHER PARTICULARS REGARDING PARTIES TO W HOM THE EXCEEDING RS.5 LAKHS WAS BOOKED. THE AO ISSUED NOT ICE UNDER SECTION 133(6) ON RANDOM BASIS TO 32 PARTIES. THE ASSESSEE COULD NOT PRODUCE THE PARTIES BUT ASSESSEE WAS ABLE TO PRODUC E THE CONFIRMATION LETTER AFTER THE ASSESSMENT ORDER. THEREFORE, THE AO HAS MADE THE ADDITION OF RS.87,65,67,447/-. 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS PARTLY ALLOWED THE APPEAL. ITA NO.2862/M/2015 M/S. PLATINUM COMMUNICATIONS PVT. LTD. 3 4. DURING THE COURSE OF HEARING BEFORE US, THE LD. A.R. SUBMITTED THAT DURING THE COURSE OF HEARING BEFORE THE LD. CI T(A) THE LD. CIT(A) HELD THAT DURING THE COURSE OF PROCEEDINGS A SSESSEE HAS FAIRLY CONCEDED THAT A PART OF PURCHASE MAY BE ADDED TO TH E TOTAL INCOME OF THE ASSESSEE IN ORDER TO CLOSE THE MATTER. THE LD. A.R. SUBMITTED THAT ASSESSEE DID NOT GIVE SUCH CONCESSION TO THE LD. CI T(A). THEREFORE, HE REQUESTED THAT THE MATTER MAY BE AGAIN SENT BACK TO THE LD. CIT(A) TO DECIDE THE MATTER ON MERIT. 5. THE LD. D.R. DID NOT AGREE TO IT. 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE P ARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT ASSESSEE HAS PRODUCED CONFIRMATION LETTER IN RESPEC T OF THE PARTIES AND ASSESSEE HAS NOT GIVEN ANY CONCESSION BEFORE US . THEREFORE, IN THE INTEREST OF JUSTICE AND FAIRPLAY, WE RESTORE TH IS MATTER BACK TO THE FILE OF LD. CIT(A) TO DECIDE THE MATTER AFRESH IN R ESPECT OF THE ADDITION SUSTAINED OF RS.87,65,67,447/- AND THE LD. CIT(A) IS DIRECTED TO DECIDE THE MATTER AFRESH AFTER GIVING D UE OPPORTUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 10.112017. SD/- SD/- (RAJESH KUMAR) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 10.11.2017. * KISHORE, SR. P.S. ITA NO.2862/M/2015 M/S. PLATINUM COMMUNICATIONS PVT. LTD. 4 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.